Walmart (NYSE:WMT) announced it will further its e-commerce progress by merging its two tech groups into a unit called Walmart Technology.
According to reports, as early as next month the big-box retailer will combine the tech team in the Bentonville, Arkansas, headquarters with the staff of Walmart Labs, which facilitates e-commerce development, in San Bruno, California, reported Progressive Grocer. The new unit will employ 8,000 staff.
The move is part of Walmart's strategy to further advance its $13 billion e-commerce business. The company is hoping to better compete with Amazon and other brick-and-mortar companies by expanding its e-commerce services and recently launched a click-and-collect service.
Back in October 2015, President and CEO Doug McMillon laid out a strategic growth plan that included a higher investment—$1.1 billion in 2017—in digital initiatives.
Although Walmart is currently the third largest e-commerce seller after Amazon and Apple, its growth rate has slowed recently, growing only 10 percent in the recent quarter, reported Fortune.
"Our customers don't think of these as different experiences. To them, it's just Walmart or Sam's Club," Neil Ashe, head of the company's e-commerce division, said in an internal memo. Ashe also pointed out that the new unit will lead organizational offerings such as Walmart Pay.
CIO Karenann Terell and CTO Jeremy King will continue to lead their teams under the guidance of Ashe, who will lead the combined Walmart Technology.
-See this Progressive Grocer article
-See this Fortune article
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